Block chain Technology Invades Logistics Market
Innovation has been far and few in the global freight market but this will soon come to an end because leading shipping companies are trying to create logistics platform running with block chain technology. This will benefit players such as white glove logistics and the consumers. With logistics solution provided by block chain, the efficiency of international shipping system will surely improve for the better. A number of projects involving block chain logistics are already being developed but there is no definite expectation as to how the logistics market will evolve.
In an industry estimate, as maximum of 20 per cent of all the fleets in the world that are carrying shipping containers can go off-grid at some point of the journey. As of now, there is no technology that is good enough to be use in tracking these shipping containers despite the fact that the number is quite high in the logistics system. This is only one of the many reasons why haulage infrastructure is suffering from inefficiency. Experts believe that the innovation provided by the block chain logistics can rectify this problem.
There are many top haulage companies that are currently developing logistics platforms with blockchain technology such as Maersk and IBM. The last time that an innovation as big as blockchain was developed was in the 60s when standardized shipping container was introduced. After the introduction, a uniform set of sizes was used in non-bulk haulage. This big change only impacted the forefront of the operation but the back office remains to be the same.
The role played by standardized containers in handling the physical goods will be the same role that block chain will have in the back office. Top shipping companies in the world has heard of the huge impact that block chain has therefore they are not missing this opportunity to create their own platforms.
FedEx is one of these companies developing their own system with blockchain as the foundation and white glove logistics might follow suit as the innovation gains more recognition. This system will make it possible for all customers and counterparties to have a centralized data center.